Along with pumpkin spice lattes and way-too-early holiday music playing at the supermarket, fall is the season when your CPA firm sends out annual engagement letters for the coming year.
A hefty document with as many clauses as a legal contract (because it is), reading through yours can feel like a chore.
To cheer you up, here are six reasons why clients actually love engagement letters.
1 – 100% clarity on scope of services
Misunderstandings between clients and service providers regarding the scope of services can be frustrating for both parties – but with an engagement letter, all confusion is cleared up prior to signing.
An engagement letter:
- Clearly defines the services to be provided
- Clarifies what is outside the scope of the agreement
- Aligns both parties on expectations
- Reduces the likelihood of disagreements
2 – Legal protection
Your engagement letter serves as a contract that outlines both your responsibilities and the responsibilities of the firm. In the unlikely event of a dispute, the terms of the engagement letter can be used as a reference to provide a fast and easy resolution.
3 – Fee structure, payment terms and penalties outlined
With all financial arrangements summarized in one place, it’s easier to budget your costs over the coming year. Filing deadlines and other penalty triggers are clearly defined for no surprises when it comes to additional fees due.
4 – Client relationship management
At Accountability Services, we take building personal connections with our clients seriously.
Signing an engagement letter sets the tone for a successful professional relationship by:
- Fostering honesty and transparency
- Building trust
- Highlighting our commitment to due diligence
5 – Compliance and regulatory requirements
Your engagement letter is proof that all the work we deliver as a firm complies with professional standards and all regulatory requirements. Engagement letters are built for driving compliance.
6 – Stay proactive
Reviewing engagement letters in the fall is a proactive way to stay ahead of your finances. Signing before the holidays hit makes it easy to enjoy the festive season, with the peace of mind that your finances are already squared away.
Engagement letters serve as a foundation for a successful client-provider relationship
An engagement letter is a crucial document that outlines the terms and conditions of our professional relationship – but more than that, it’s our promise to you.
A promise to set aside bandwidth from our team to serve you.
A promise to deliver expertise in a timely manner.
A promise that your CPA firm will be there when you need us.
